UDIA report shows what’s stopping housing from being built in NSW
For the second year in a row, UDIA NSW’s 2022 Greenfield Land Supply Pipeline Report – launched today at the UDIA NSW State Conference – shows the constraints causing significant housing undersupply, which is also placing upward pressure on house prices.
With only 11% of lots in the Megaregion considered ‘development ready’ anyone looking to buy a house should be concerned.
Drawing upon the 2021-22 NSW Intergenerational Report, 42,000 new homes are forecast to be required each year to attain the estimated 1.7 million new homes by 2061. This translates to around 14,000 new greenfield homes per annum across the Sydney Megaregion (Illawarra-Shoalhaven to the Hunter).
So… what’s holding back the delivery of these urgently needed homes by 2030.
- 80% of lots programmed for release in the next 8 years face constraints of enabling infrastructure (roads, water, sewer, power). Over just the next 4 years, 74% of lots are constrained by a lack of enabling infrastructure, approximately 9,500 more lots than our report last year.
Greenfield Land Supply Outlook
- Enabling infrastructure and Biodiversity holds back the overwhelming majority of lots from delivery, but the additional challenges caused by VPA negotiations, rezoning, and feasibility should not be ignored.
Number of Lots Impacted by Constraints, Six Cities Megaregion
- If all lots identified in our research for delivery between FY23 and FY30 were delivered, including those constrained, supply would still fail to satisfy demand by 20,100 lots by 2030.
Cumulative Undersupply in the Six Cities Megaregion
Compared to a year ago, the development industry is facing significant headwinds including the rising cost of building materials from supply chain blockages, rising interest rates, record-high inflation, and critical labour shortages. The failure to create a sustainable pipeline of development ready land will add to these headwinds, undermine housing investment, and increase supply shortfalls,” said Steve Mann, CEO UDIA NSW.
“Getting the development ready land supply pipeline right by providing ongoing investment in enabling infrastructure and using UDP Regional Committees to prioritise these investments would provide a significant step towards tackling the housing supply and affordability crisis and create a burgeoning and sustainable Sydney Megaregion,” said Mr Mann.
“Any government that is serious about addressing the housing shortage and making homes more affordable needs to do a lot more to fix the future pipeline of new homes,” he added.
The full report can be found here.
Deanna Lane: 0416 295 898 or email@example.com